Stablecoins Under MiCA: What Changes for EU Users

Stablecoins are crypto-assets designed to keep a stable value, usually by tracking a currency such as the euro or the US dollar. They are used to move money between platforms, to park funds between trades and increasingly for payments. Because they look and feel like money, the EU decided they needed stricter rules than other crypto-assets.

Those rules are part of the Markets in Crypto-Assets Regulation (MiCA). The stablecoin chapters have applied since 30 June 2024, six months before the rest of MiCA. If you want the bigger picture first, read what MiCA means for crypto users in the EU.

Two types of regulated stablecoins

MiCA does not actually use the word “stablecoin”. Instead it defines two categories:

E-money tokens (EMTs): crypto-assets that aim to keep a stable value by referring to the value of one official currency, such as the euro or the US dollar. Most well-known stablecoins fall into this category.
Asset-referenced tokens (ARTs): crypto-assets that refer to another value or right, or a combination, for example a basket of currencies, commodities such as gold, or other crypto-assets.

Algorithmic “stablecoins” that try to hold their value only through code and market incentives, without real reserve assets, do not get the regulated status that comes with being an EMT or ART. The collapse of TerraUSD in 2022, which wiped out billions in value, was one of the reasons lawmakers took a strict approach.

What issuers must do

Authorisation

An issuer of an e-money token must be authorised as a credit institution (bank) or an electronic money institution. An issuer of an asset-referenced token needs a specific authorisation under MiCA (or must be a credit institution). Issuers must publish a crypto-asset white paper and notify it to their regulator.

Reserves

Issuers must back their tokens with reserve assets and keep these separate from their own funds. For EMTs, a significant part of the funds received must be held as deposits at credit institutions, and the rest invested in secure, low-risk and highly liquid assets denominated in the same currency. ARTs must hold a reserve of assets that is managed, safeguarded and regularly audited.

Redemption at par

Holders of an e-money token have a legal right to redeem their tokens from the issuer at any time and at par value, meaning one token for one euro (or one dollar) of the referenced currency. The issuer may not charge a fee for this redemption. Holders of ARTs also have a permanent right of redemption.

Note the practical side: this right is against the issuer. Ordinary users usually buy and sell stablecoins on an exchange, where the market price can differ slightly from the reference value, and fees of the exchange apply.

No interest

Issuers and crypto service providers may not pay interest on EMTs or ARTs, including any benefit linked to how long you hold them. The idea is that stablecoins should function as a means of payment, not as a savings or investment product. Be wary of offers that promise a yield on holding stablecoins; such a yield must come from somewhere and often involves lending, DeFi or other risks.

Extra rules for large stablecoins

Stablecoins that become significant, for example because of their number of holders, value or transaction volume, are subject to stricter requirements on capital, liquidity and reserves and are supervised directly by the European Banking Authority (EBA). For ARTs and for EMTs denominated in a non-EU currency, MiCA also sets limits when they are widely used as a means of exchange within the EU, to protect monetary sovereignty.

Why some stablecoins became harder to use in the EU

Crypto service providers in the EU may only offer stablecoins that comply with MiCA. In early 2025 ESMA set out its expectation that providers restrict trading in non-compliant stablecoins, after which several large exchanges limited or removed certain stablecoins for EU customers, in some cases allowing only sales.

The most prominent example is Tether (USDT), the largest stablecoin worldwide, whose issuer did not seek MiCA authorisation. Other stablecoins, such as Circle’s USDC and EURC, are issued in the EU by an authorised electronic money institution. Several banks and payment companies have also launched euro-denominated EMTs.

What this means for you:

On an authorised EU platform you will mostly see MiCA-compliant stablecoins.
Holding a non-compliant stablecoin in your own wallet is not forbidden, but EU platforms may not let you buy it, and you do not get the MiCA protections that come with a regulated token.
Lists of compliant tokens change. Check the ESMA register of authorised issuers or the issuer’s own authorisation details rather than relying on marketing claims.

What MiCA does not change

Even regulated stablecoins are not the same as money in a bank account:

No deposit guarantee. Stablecoins are not covered by the deposit guarantee scheme that protects bank savings up to €100,000.
Depegging is still possible. In March 2023, USDC briefly traded well below one dollar after part of its reserves were stuck at a failing US bank. Reserve rules reduce this risk but do not eliminate it.
Platform risk remains. If you hold stablecoins on an exchange, you also depend on that exchange. Check that it is authorised; our guide on checking whether a crypto exchange is licensed explains how.
Self-custody risks remain. Sending to a wrong address or losing your keys means losing your funds. There is generally no way to reverse a blockchain transaction.
Currency risk. A dollar stablecoin tracks the dollar, not the euro. Its value in euros moves with the exchange rate.
Sanctions and freezes. Many issuers can freeze tokens at specific addresses, for example at the request of authorities.

Practical checklist

Prefer stablecoins whose issuer is authorised in the EU, and verify this in the official registers.
Understand whether a token is an EMT or an ART, and which currency or assets it references.
Be sceptical of any offer that promises interest or “yield” on stablecoins.
Keep records of your transactions. In the Netherlands, stablecoins held on 1 January count towards your box 3 assets like other crypto.
Do not keep more on a platform than you need, and never send stablecoins to someone who contacted you unsolicited.

The bottom line

MiCA turned stablecoins in the EU into a regulated category with clear duties for issuers: authorisation, reserves, a right to redeem at par and a ban on paying interest. That is a real improvement in transparency. But a regulated stablecoin is still a crypto-asset, not a bank deposit, and the risks of depegging, platform failure and user error remain.

Sources: Regulation (EU) 2023/1114 (MiCA), Titles III and IV; ESMA statements on non-compliant asset-referenced and e-money tokens (2025); EBA information on stablecoin supervision. Information as of October 2026.

Disclaimer: This article is for information only and is not financial advice. Crypto-assets are highly risky and you can lose all your money. See our Risk Warning.